Problem 8-4A (Algo) Computing and revising depreciation; revenue and capital expenditures LO C1, C2, C3 Champion Contractors completed the following transactions involving equipment Year 1 January 1 Paid 5.302,000 cash plus $12,ese in sales tax and $1.500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $30,200 salvage value. Loader costs are recorded in the Equipment account. January 3 Poid 54,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage Value of the loader by another $1,200. December 31 Recorded annual straight-line depreciation on the loader. Year 2 January 1 Paid $4,940 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. February 17 Paid $1,225 for minor repairs to the loader after the operator backed it into a tree. December 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events View transaction list Journal entry worksheet 1 2 3 4 5 6 Pald $302,000 cash plus $12,080 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four- Year life and a $30,200 salvage value. Loader costs are recorded in the